Himachal's Financial Crossroads: Navigating Without Revenue Deficit Grant
The discontinuation of the Revenue Deficit Grant (RDG) is compelling the Himachal Pradesh government to potentially take drastic measures, such as cutting subsidies, freezing hiring and salary increments, and implementing austerity steps. The state's finance department stresses the impact on the budget, highlighting a significant fiscal gap.
- Country:
- India
The Himachal Pradesh government faces potential fiscal hurdles as the Revenue Deficit Grant (RDG) sees discontinuation. Senior officials suggest possible rollback of subsidies, staff reductions, and freezing of allowances to mitigate budgetary impacts.
A finance department presentation outlined measures to address the financial strain anticipated from the RDG loss. Recommendations include eliminating subsidies, closing institutions, and suspending pay revisions.
With a significant funding gap threatening the state's budget, Chief Minister highlights the critical role RDG played in fiscal stability. New austerity measures may be adopted to maintain economic balance, with decisions pending government approval.
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